The Following Information for a Bond Having No Expiration Date

question 28

Multiple Choice

The following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent.Refer to the above information.If the price of this bond increases to $1,250, the interest rate in effect will:

• A)fall to 9 percent.
• B)fall to 8 percent.
• C)rise to 11 percent.
• D)rise to 12 percent.

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Definitions:

Confederates

Individuals who secretly work with researchers to act as part of an experiment's social setting but whose behavior is rehearsed or controlled to manipulate the social context.

In Vivo

In life or in a real-life situation, often used to describe experiments conducted in natural conditions as opposed to a laboratory.

Flooding

Flooding is a behavioral therapy technique for treating phobias and anxiety disorders by exposing the patient to fear-inducing stimuli in a controlled environment to the point of extinguishing the fear response.

In Vivo

A term used in research to refer to experiments or studies conducted in the living organism, as opposed to in vitro or in a laboratory setting.